Author Topic: UDFI - United Development Funding IV  (Read 7558 times)

SugarRE

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Re: UDFI - United Development Funding IV
« Reply #20 on: June 23, 2020, 11:08:41 PM »
I've been very slowly digging into this and wanted to throw a few comments/questions out there and then one request resulting from my own pure laziness.

From in market DD, i have heard that the CEO of UDF is slippery, unsavory, self serving, etc like many private REIT managers.  While it seems there is little chance of fraud given the progress of these suits, it seems pretty obvious there were massive conflicts.  And this is an externally managed REIT, sooooooo, is there any strong argument that when there is clarity on the financials, they are not just going to go back to making crappy land equity (ooops, I mean land loans) to their friends and sending the mother company big fees?  In the vein of conflicts, I believe their biggest borrower is widely known as a great salesman...but not necessarily real estate investor.  Though on second thought, maybe thats what you need to be to sell lots!

Any thoughts on NexPoint/Highland owning almost 10%? Or am I not adding correctly and its more.
https://www.nexpointgroup.com/wp-content/uploads/2020/06/NHF-12.31.19-Annual-Report.pdf
http://investors.udfiv.com/Cache/IRCache/752ac659-360a-5228-d3f9-dda37a8036e7.pdf

For the lazy ask, I'm trying to get a read on the land collateralizing their loans (assuming that so much interest has accrued that they effectively own the land (which is really the game in in event).  Does anyone have a nice neat chart of the properties collateralize the land (or seen a write up where that exists)?  While they will remain nameless, I have some in market folks who have been in this biz for a few decades who have offered to help get a read on the positions to figure if they are ripe for sales this cycle, next cycle or after we are gone.


DW1234

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Re: UDFI - United Development Funding IV
« Reply #21 on: June 24, 2020, 05:07:41 AM »
CEO is probably shady as f*ck. I think UDF will always trade at a discount because of this even if they get out of this mess.

Moayedi from Centurion American Development Group seems pretty 'legit' for a developer, being in the space in that area since the 90's and still active.

There's a comment on VIC from the originial writer which goes more into depth about which loans are paid or have yet to be paid. I don't know of an overview of their collateral other than what they showed in Q3 '15. I'm curious to hear your findings if you can get some more info.

 

SugarRE

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Re: UDFI - United Development Funding IV
« Reply #22 on: June 25, 2020, 12:54:03 PM »
Can anyone connect me with the author of the original VIC post?

Foreign Tuffett

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Re: UDFI - United Development Funding IV
« Reply #23 on: July 14, 2020, 06:24:15 AM »
NexPoint isn't happy about the lack of disclosure, might sue to force an annual meeting, and wants everyone to know about its displeasure.

https://www.sec.gov/Archives/edgar/data/1356115/000119312520192037/d14490dex992.htm

I view this as a very positive development. An institutional shareholder publicly pressuring management is exactly what this situation needs.

The very first sentence of the letter is particularly promising: "express our continued interest in a transaction with the Trust"

Former Teldar Paper Vice President

writser

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Re: UDFI - United Development Funding IV
« Reply #24 on: July 14, 2020, 07:10:52 AM »
Agreed. Good to see someone stirring the pot. Mr. Greenlaw himself doesn't seem to be in a hurry to do or disclose anything for shareholders.
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Foreign Tuffett

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Re: UDFI - United Development Funding IV
« Reply #25 on: July 14, 2020, 04:56:56 PM »
Up ~10% today, but UDFI may be a better buy now at a higher price than it was yesterday at a lower price. The way I figure it, one of the biggest risks here is that nothing happens for an extended period of time and the external management structure, potentially poor decisions, and legal fees slowly eat the company alive. I think activist involvement significantly diminishes the odds of this 'slow grind to zero' outcome.
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thepupil

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Re: UDFI - United Development Funding IV
« Reply #26 on: July 14, 2020, 05:07:14 PM »
Just want to say that I’m blindly following in small size here and appreciate everyone’s efforts

SugarRE

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Re: UDFI - United Development Funding IV
« Reply #27 on: July 15, 2020, 02:57:43 PM »
Trying again.....can anyone help with their asset base?

Hielko

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Re: UDFI - United Development Funding IV
« Reply #28 on: July 16, 2020, 05:55:50 AM »
The latest information you can find is te 2015 Q3, that has a table with a summary of all their property loans.

writser

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Re: UDFI - United Development Funding IV
« Reply #29 on: July 16, 2020, 12:27:51 PM »
One thing I would like to know (but probably never will) is who is selling. This dog has been delisted for years, why would you throw in the towel at this point? Shares are trading at an all-time low while the company just started paying dividends again last year and there is actually a sprinkling of good news. Yet there still seems to be decent supply at the sell side below $2. People smarter than me? Forced sellers?
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